CHAPTER-2

LEARNING OBJECTIVES:

1) Understanding the concept of shoppers ’ behaviour

2) Understanding the major aspects of buyer behaviour

3) Understanding the model of buyer behaviour and types of buying situations

INTRODUCTION

Massive malls, packed multiplexes, hypermarkets, designer wear showrooms. No doubt

shopping in itself is a sheer delight. A wide array of products to choose from! There is

something for everyone and it seems that everyone is vying for a piece of the action.

Retail selling is the essence of retail business. It is not only about putting the right

product in your store alias it is about displaying them in a right manner so a to attract the

shoppers. It is also about creating an identity for the brand, in a way that it stands out

from the ambiance of the rest of the space and reaches out to the customer. Apart from

creating the right kind of ambience and environment a retailer must keenly observe and

understand the buying behavior of its customers. Shoppers Behaviour can be defined as

the process through which shoppers make decisions regarding the utilization of their time,

money, and efforts in order to procure, use and dispose off goods and services. As soon

as a need for a product is realized by a customer, the first thing that comes to his or her

mind is what to buy so as to fulfill his need and then starts the process of taking purchase

decision. The way of taking this decision varies from person to person and from situation

to situation. Although there are many factors that shape shopping behavior, and it is

almost impossible to know and understand each one of them, still some most crucial

factors that influence shopping are:

a) Lifestyle- the way people spend their time and money. The lifestyle of Indians not

only in urban areas but in rural areas too, is undergoing a major transformation.

While urbanites are spending their leisure time in shopping for national and

international brands from up market malls and shopping plazas, there rural

counterparts are becoming aware about brands and there advantages over

unbranded products. In today‟s scenario shopping is becoming a source of

entertainment and a wonderful stress buster in this highly stressful life. Retail

stores & shopping malls act as the destination point for these people. Plethora of

brands, exciting food, discounts and offers, in a warm and out of the world

ambience (of a shopping mall) helps people relax themselves and loosen their

pockets.

b) Social factors-(i) Culture: refers to the set of values, attitudes & ideas that are

accepted by a homogenous group of people and transmitted to the next

generation. Culture determines people‟s choice of brands, retail stores; purchase

quantity, response towards sales offers etc. for example: North Indians prefer to

eat outside on special occasions whereas South Indians prefer home cooked

meals. This explains the phenomenal success of national and international

restaurants in North India. (ii) Social class: refers to the classification of members

of a society into a hierarchy of distinct status classes, so that members of each

class have relatively similar status and members of all other classes either have

more or less status. Social class greatly affects shopping behavior. For example:

Middle class prefers to buy grocery once in a month and therefore are always in

look out for deals and bulk purchase offers from retailers. The success of Big

Bazaar and its „Maha Bachat‟ schemes can be attributed to this fact. (iii)

Reference groups: refers to the groups, of which people are a part of or aspire to

be part of. They serve as a source of information and reference to shoppers in

taking decisions related to their shopping. For example: Delhi- Haat, shopping

plazas, McDonald‟s etc. is favorite hang outs for teenager groups.

c) Shopping attitude- means the way customers perceive shopping. Although

shopping is considered to be a fun activity by majority of youngsters in urban

cities, some (mainly elderly or middle aged) however still consider it a waste of

time.

d) Consumer Knowledge- awareness about various retailers, there pricing strategies,

brands offered, merchandise range etc. also affect the choice of shoppers. For

example: a shopper planning to buy an electronic item will search through various

organized(Tata Croma, e-zone, Next etc) as well as unorganized sector retailers

and compare the deals offered by each one of them on various brands before

deciding upon buying a particular brand from a particular retailer.

e) Gender roles- dual career couple families, DINKS (double income, no kids)

families, single parent families have substituted the traditional family life cycle

model mainly in metro cities. Shopping is no longer a women‟s activity, men are

equally sharing the responsibility of shopping for household items. Role of kids

can also not be ignored as they have a greater say in the choice of brands that will

be bought. For example: In this tech savvy generation where kids are more aware

about various brands, then their parents, its they who decide the brand of

toothpaste as well as the brand of LED TV to be bought by the family.

f) Time poverty-shortage of time is making today‟s customer a time starved

customer looking for precision shopping. No doubt these one stop shops like

Shoppers Stop, Big Bazaar, and Lifestyle are generating hoards of customers

every day. Online shopping is also on rise, this opens another low cost

opportunity for retailers i.e. e-tailing. Speed & promptness in services is the key

to success for e-tailers.

g) Perceived risk-tendency of the shoppers to take risk, of trying new retail outlets,

retail formats and new brands is termed as perceived risk. Although as per

research the risk taking ability in Indians is found to be low but the younger

internet savvy generation is quite influenced by their western counterparts and

therefore don‟t hesitate in trying out new trends, fashion & fads(of course with

calculated risk, an effect of Indian culture).

h) Psychological factors-(i) People‟s motives: a motive can be defined as an internal

energizing force that orients a person‟s activities towards satisfying a need or

achieving a goal. A sound understanding of the need level of shoppers can help a

retailer in knowing, what motivates consumer preference towards a particular

retail format or store. (ii) Attitudes: is the consumer‟s predisposition to respond

positively or negatively to an element of retail mix. The success or failure of a

retail store greatly depends upon the attitude majority of shoppers have towards a

particular store. (iii) Personality: refers to all the internal traits and Behaviors that

make a person unique. Shoppers try to match their self images with that of brands

and retail stores and therefore select those which match their personalities.

Apart from the above factor (from individual‟s point of view) that influence shopping

behavior , there are other factors (from retailer‟s point of view) that also influence

shopping behavior of a customer. These are as follows:

Retailer‟s Marketing Efforts- the kind of sales & promotion strategies adopted by

the retailer to attract the customer.

Retailer‟s goodwill- the kind of image or goodwill enjoyed by the retailer in the

minds of majority of its shoppers. This is the factor which pills a shopper again

and again to the same store.

Retailer‟s store location- conveniently located stores are likely to attract more

shoppers‟ as compared to an inconveniently located store. Customer convenience

comes from; store‟s exact location (site), its accessibility for the shopper, parking

facility and neighboring stores or shopping complex etc.

Purchase terms- the terms of sale such as cash or credit facilities offered, discount

policy, delivery services and exchange policy of the retailer.

IMPORTANCE OF UNDERSTANDING SHOPPERS BEHAVIOUR

Although the process of purchase i.e. the stages through which a shopper passes, while

he/she is taking purchase decision, is necessarily the same in all the cases however still,

the factors that influence the purchase decision vary from person to person. That is why

every shopper which is moving inside a retail store is not the same and thus should not be

handled in the same way.

According to a research, the most common reason for failure of many supposedly good

retail stores, is their inability to understand differences among the customers and hence

inability to handle them differently. They use the same canned sales presentation i.e.

same sales tactics and same strategies with each and every customer with whom they

interact and therefore they are unable to convert each one of them. Although an ability to

perceive consumer differences and using them to modify your sales talk will not ensure

that you will be able to convince and convert each and every customer that moves into

your store but it will help you attend them properly and cater to their needs in a much

better manner so that even if they are not buying at the moment, yet they will carry a

positive experience with them when they move out of the store, Infact they will make an

image of the store in their mind so that when ever they feel a particular need which they

perceive can be best fulfilled at your store, they will automatically come to your store, at

times without even visiting any other store. Research indicates that in times to come, only

those retailers who understand what their customers need and provide them with exactly

what they want even before they ask for it, are the ones who are going to survive in this

highly competitive sector of retail.

THE IMPORTANT ASPECT OF BUYER BEHAVIOUR

~ Consumer decision making model (CDP)

No one will buy a product/service unless they feel the need of the same. In order to solve

their problem or fulfill their need they will not just go into the market and buy the product

without giving it a single thought but there is a complete step by step process involved in

the purchase decision. This step by step process is termed as CDP (consumer decision

process. Fig. 2.1 presents a simplified version of CDP model). It represents a road map of

consumer‟s mind that marketers and managers can use to help guide product mix,

communication and sales strategies. It shows how people solve the everyday problems

that cause them to buy and use products of all kinds.

Five-Stage Model of the Consumer Buying Process

Fig: 2.1, consumer decision process or information processing model

This model which is the most acceptable model of consumer buying process is based on

the perception which assumes the consumers to be rational decision makers and not an

emotional decision maker.

Five distinct stages can be identified in the consumer decision process model. These are

as follows:

1) PROBLEM RECOGNITION- occurs when a person identifies a particular need

or comes face to face with a problem. It could be as simple as a need for a loaf of

bread for breakfast. Or it could be as tedious as choosing the right brand of luxury

car or deciding upon the course to be opted in graduation which would surely

require a lot of searching. Every day a person is faced with different types of

problems that can be resolved by a variety of products/services offered by various

marketers in the market. Infact, whenever we find out a difference between the

actual state and a desired state, a problem is recognized. When we find a

problem, we usually try to solve the problem. In other words, we recognize the

need to solve the problem. But the very next which comes to our mind is how to

solve this problem.

Retailer‟s insight at this stage:- i)what benefits are consumers trying to seek?

ii) to what extent are the target market customers, involved with the product?

iii) are the needs realized by the prospective customers, a felt need or is it a dormant

need?

2) INFORMATION SEARCH- as in case of solving the problem of finding bread for

breakfast, this can be easily resolved by the near by grocery store in most of the

cases therefore a person need not search much as he/she is already aware of the

solution to his/her problem. But in the case of choosing a brand of car or UG

course, one may do some through searching to obtain the information about them.

This may include discussions with peers, friends & family in the same context or

may include visit to various dealers, universities etc. Theoretically, there is a total

set of brands available to a person, but he/she will become aware of only a subset

of the brands (awareness set) in the market. Some of these brands may satisfy

his/her initial buying criteria, such as price and processing speed (consideration

set). As the person proceeds to more information search, only a few will remain

as strong candidates (choice set).

Retailer‟s insight at this stage:- i) what type of product or brand related information

already stored in the minds of the customer?

ii) Is the consumer interested in seeking information from external sources?

iii) What are the major sources of information for my target market customers?

iv) Customers seek information regarding which specific features or benefits of a

product?

3) EVALUATION OF ALTERNATIVES- How does the consumer evaluates

various market offerings, how do they process competitive brand information and

evaluate the value of the brands? There is no single, simple evaluation process

applied by all consumers or by one consumer in all buying situations. i.e. it varies

not only from person to person but also within same person. One dominant view,

however, is to see the evaluation process as being cognitively driven and rational.

Under this view, a consumer is trying to solve the problem and ultimately

satisfying his/her need. In other words, he/she will look for problem-solving

benefits from the product. The consumer, then, looks for products with a certain

set of attributes that deliver the benefits. Thus, the consumer sees each product as

a bundle of attributes with different levels of ability of delivering the problem

solving benefits to satisfy his/her need. The distinctions among the need, benefits,

and attributes are very important. The product attributes are relevant and

important only to the extent that they lead to a certain set of benefits. Likewise,

benefits are meaningful only if they can address the problem and be instrumental

to satisfy the underlying need. As the underlying need is often personal,

consumers differ as to their beliefs about what product benefits and attributes are

more (or less) important and relevant in satisfying their needs. Based on their

personal judgment on importance of benefits and attributes, consumers develop a

set of attitudes (or preferences) toward the various brands. One may express

his/her preferences of the brands in terms of ranking, probability of choice, and so

forth.

Retailer‟s insight at this stage:

i) How do customers compare and evaluate products?

ii) Which product and/or brand alternatives are included in the evaluation

process?

iii) On what parameters/ attributes do customers compare and evaluate products/brands

4) PURCHASE DECISION- once the buyer has evaluated all the alternatives, now

he/she would like to take the purchase decision. However there are some factors

that influence the choice of the buyer at this point of time, that may intervene

between the purchase intention and purchase decision which in turn may change

the final purchase decision. These are: the attitude of others, what will be the

probable reaction of my family and friends if I buy this product? What if I buy the

other brand? Will they be impressed more with the purchase of brand A or brand

B will be more appealing to them? The other factor could be the unanticipated

situational factors(my choice of brand is out of stock so I have to settle for what is

the second best or I have another important thing coming up so I have to

compromise on the brand and settle for the lower priced version, this time. These

are the type of questions that are raised in a customer‟s mind before he takes the

final purchase decision. Therefore in finalizing a purchase intention a customer

may take up to five purchase sub-decisions such as – choice of the exact brand

(brand A finalized) and the vendor from whom to purchase (XYZ Ltd.), The

decisions related to the quantity to be purchased (2 units) and the timing of

purchase (coming weekend), decisions related to the mode of payment ( through

credit card) . This stage ends with the ultimate buying of the product or brand by

the customer.

Retailer‟s insight at this stage:- i) To what extent will the consumers spend time and

efforts to shop till the desired alternative is found?

ii) Where would a customer prefer to shop? In a retail store or at the convenience of their

home through internet.

5) POST PURCHASE BEHAVIOR- after buying the product customer compares its

performance with the expectations he had from the products. The satisfaction and

dissatisfaction depends on the experience he has with the product. This can be

evaluated on the basis of the formula:

S= P- E

Where P is the performance as perceived by the customer after he has used the product

S stands for satisfaction achieved from the product

E stands for the expectation he had from the product

There could be three situations possible:

P> E i.e. S is +ve- customer delight

P< E i.e. S is –ve- dissatisfaction

P= E i.e. S is 0- just satisfied

A delighted customer will go for repeat purchase where as a satisfied customer may look

for better alternative next time and will buy this brand if a better one is not available and

an unsatisfied customer will surely look for another brand next time. This in turn

determines customer value perceptions and customer communications. Therefore it is

necessary for a marketer to ensure strong post purchase communications through ads and

personal interactions by sales people that reduces the post purchase dissonance ( tension,

anxiety and psychological feelings associated with the purchase of new products) and

ensures the customers that they made the right choice in buying the product/brand

Retailer‟s insight at this stage:- i) In what way is the consumer using the product? In the

intended way or as recommended by the usage or care instructions or in an innovative

way not actually being promoted by the marketer?

ii) Is the product being used alone or in combination with some other products?

iii) What is the frequency of usage?

iv) Is their any involvement of household members, peers and others in the consumption

process? If yes, to what extent?

v) How is the product stored when it is not in use? As suggested by the marketer or in

some other way?

TYPES OF PURCHASE DECISIONS or TYPES BUYING SITUATIONS

All the purchases made by a customer are not the same. Sometimes consumers undertake

a complex decision process requiring substantial amounts of time and energy. More

common however rather simplistic processes are in which relatively little time and effort

are devoted to the decision. In situations where consumers are making decisions for the

first time, actions must be based on some form of problem solving. When this process is

very complex and lot of factors are coming into play during decision making and it is

very time consuming, than it is called Extended Problem solving situation however if the

process of decision making is comparatively simpler and consumes lesser time and

efforts, than it is called Limited Problem Solving situation.

In conditions where purchasing is done on repeat basis, the individual may engage in

problem solving once again but he/she may greatly simplify the decisions by foregoing

any deliberation of purchase alternatives and simply choosing the same brand previously.

This represents Habitual Decision Making, the least complex of all decision processes.

INITIAL PURCHASE

In case the initial decision is made by extended problem solving, enduring buying

patterns based on brand loyalty are often established. On the other hand if the problem

had been limited problem solving based, than it will lead to inertia based habits such as

saving time and energy by sticking on to the same brand.

EXTENDED PROBLEM SOLVING

Fig: 2.2, Extended problem solving involves lot of cognitive thinking, time and effort

in resolving the identified problem.(source: reuters.com)

Whenever you are buying automobile or expensive clothing, electronic item such as

Laptops, tablets etc. or any other thing that involves high cost and the decision risk is also

high than in such cases the consumer spends considerable time and efforts at each and

every step of purchase process (explained above), the buying situation in such cases is

known as extended problem solving situation. In such cases the decision process is

especially detailed and rigorous. The problem solving of a higher degree of complexity

that influences consumers‟ actions often occurs.

There are different conditions in which this buying situation may arise. Sometimes it

is fueled by doubts and fear, other times it may arise due to lack of experience and

information about an expensive, significant and high- involvement purchase. Consumers

going through this type of buying situation are open to Information coming from various

sources and are motivated to undertake the effort required in making “the right choice.”

As mentioned above, in this type of buying situation all steps in purchase process are

passed through, though they may not occur in the same sequence as mentioned in the

previous section. In these situations consumers often evaluate all possible alternatives,

consulting a wide variety of product information sources and research options on how

and where to make the purchase. Hence a high degree of thought and evaluation usually

precedes the act of purchase and use because of the importance of making the right

choice. After the product has been purchased the customer analysis and tries to reflect his

experiences about the product purchased. If the item purchased falls below the

expectation level (P< E) this will lead to substantial and that too vocal dissatisfaction.

Wherein this customer will tell his family and friends about his bad experience with the

product. However if the product goes beyond the expectations of the customer (P>E) than

the situation will be a positive recommendations to others and chances of repurchase of

the same product/brand in case the situation arises. Research indicates that a dissatisfied

customer is 10 times more likely to discuss his bad experience with others than that of a

customer who has had a positive experience with the product. Therefore it is necessary

for the marketers to understand the buying situations to which their products belong.

LIMITED PROBLEM SOLVING

Fig: 2.3, offers or discounts often attract customers and makes them to shorten their quest

of finding the right brand thereby making the situation a limited problem solving

situation( source: upto 75.com)

When we are buying clothing for daily use or ordinary household equipments etc. or in

other terms buying items that require less cost and lesser risk, in such cases need

recognition leads to buying action; extensive search and evaluation are avoided because

the purchase does not assume great importance. This is known as limited problem solving

buying situation because it involves lower degree of complexity that influences

consumer‟s actions. It is quite possible that a consumer experiencing this type of buying

situation may skip one or two steps in the purchase process or at times all the steps are

taking place but the time and efforts spent on each step in comparatively quite less. In

most cases, consumers have neither the time and resources, nor the motivation to engage

in extended problem solving situation. In these situations consumers try to simplify the

buying process by sharply reducing the number and variety of information sources,

alternatives and criteria used for evaluation. The criterion used for selecting brands varies

from person to person. Some consumers are attracted by a competitive distinction offered

by a supplier, no matter how small it is, often leads to “why not try it”, attitude and

initiates trial of a new brand. Some consumers on the other hand might be attracted by the

free gifts or sweepstakes; price offs and other promotional offers, offered by the

marketers. Hence in this type of buying situation a brand that is recognized at the point of

purchase is more likely to be tried, indicating the importance of winning the battle of

advertising recognition in the war for market share. Heavy point-of- purchase sampling,

display, free coupons and other devices can be effective in triggering brand trial.

REPEAT PURCHASES

Majority of the purchases eventually are repeated over time. While going for a repeat

purchase, a consumer may face two types of situations: a) repeated problem solving

b) Habitual decision making

Repeated problem solving

Many times when consumers are not satisfied with their previous purchases because of

which they switch over to other brands. At times retailers are out of stock for a particular

brand, therefore consumer has to search for another brand or another retailer. In this type

of purchase behavior, the buyer must weigh the consequences of investing time and

energy in finding another alternative.

Habitual decision making

Fig: 2.4, a shopper going for repeat purchase would be affected by various factors, such

as brand touch points, past experiences etc. at times the purchase decision can be taken at

a fit of the moment , triggered by various external and internal factors.(source:

blog.escherman.com)

Most of the repeat purchases made by the consumers are based on habits or routines that

simplify life for the consumer. Depending upon the decision process followed in the

initial purchase, a habitual behavior can take the different forms. This depends upon two

major factors: a) brand or company loyalty and b) inertia

~BRAND OR COMPANY LOYALTY: as discussed above if a consumer experiences

satisfaction from his first purchase than its quiet likely that next time he buys the same

brand and possibly from the same retailer. Continued satisfaction and subsequent

repurchase of the same brand from the same company or retailer will eventually lead to

brand loyalty or company loyalty. This type of loyalties is highly resistant to change.

Enjoying high brand loyalty or company loyalty from its customers is a dream of every

marketer. Once a brand achieves this level, than the marketers try their level best to

maintain it. They introduce various customer retention, recognition and reward strategies

to thank customers for their continued support. For example: First citizen card of

Shoppers Stop, Green card from Pantaloons, Reliance One card from Reliance fresh,

Inner circle card from Lifestyle malls to name a few , among thousands of loyalty and

reward programs offered by companies and retailers. The sole objective of all such

programs is to keep customers happy and satisfied.

~ INERTIA- in technical terms inertia is the tendency of a physical object to remain still

or to continue moving, unless a force is applied to it. In terms of marketing it is a

condition wherein customers do not exhibit strong brand loyalty towards a particular

brand and even if the brand loyalty does exist, it often exists for several brands as a result

of which switching over between brands is a common phenomenon. Customers are ready

to switch over even at small incentives in form of coupons or offering something new,

offered by competitive brand. This type of buying behavior is commonly seen in case of

toothpastes, wherein customers in state of inertia will continue to use a brand till it is

offered something better, even if this something is not much better than his existing

choice.

In India for a long time Colgate was a household name for toothpaste, so much so that

people use to ask for Colgate when they actually wanted to ask for toothpaste. This

condition of inertia was broken by Pepsodent a brand of HUL, which offered better

mouth freshness than that of Colgate and over a period of time this Colgate spell was

broken by Pepsodent. Since then Colgate is fighting hard to win back its market share by

offering new varieties, new flavors and new packs now and then to attract the customers.

IMPULSE BUYING SITUATION

An unplanned, spur-of-the moment action triggered by product display or point-of-sale

promotion is called impulse purchase. This type of buying situation is the easiest form of

limited problem solving. In this type of situation, the consumer has no actual felt need of

the product. He is often attracted by the promotional schemes, pushy sales attitude,

motivating display & ambience of the retailer. Products such as fashion apparel,

accessories and jewelry, bakery and confectionary products are often bought on impulse.

Herein the customer usually doesn‟t undergo any step of purchase process as there is no

problem recognition in the first place itself. However this situation has its own special

and unique characteristics that are observed in customers displaying this type of

behavior:

a) There has to be a sense of urgency accompanied by a sudden and spontaneous

desire to owe the product or brand. For example: feeling prey to “limited edition”

or “offer available only the stocks last”, promotional schemes.

b) There could be a state of psychological disequilibrium wherein a person may feel

temporarily out of senses or control. For example: getting amazed and spellbound

by the ambience and visual display of the retailer.

c) There could be an intrapersonal conflict within an individual that can be resolved

by an immediate action. For example: An inner feeling that prompts, “Buy now

else you may not get this thing in future”.

d) There is minimal objective evaluation and emotions dominate the decision. For

example: “If I won‟t buy now someone else will surely take it before me, I should

be late in taking decision.”

e) There is often no afterthought of the consequences. For example: “So what if it is

on slightly higher side, but it seems unique and irresistible, we will surely find

some use for it later.”

This entire situation is marked by a high sense of emotional involvement and sense of

urgency that short-circuits the reasoning process and motivates immediate action.

VARIETY SEEKING BUYING SITUATION

Fig: 2.5, A wide variety to choose from and the urge to try something new, is something

which characterizes variety seeking buying situation.( source: reuters.com)

Brand switching is a common phenomenon observed in consumers, even if they are

satisfied with their existing brand yet they keep on looking for and trying out new brands

especially in case of goods such as fashion apparels & accessories, shoes, food products

and other daily use items. This is so because herein the customer is looking for more

variety and range. Satisfaction is not actually what a customer is seeking for in such

cases, they want to keep on experimenting with newer and newer brands. This condition

occurs when there are many similar alternatives, frequent brand shifts and high purchase

frequency. This can be prompted by external cues such as stock-outs offers or coupons

that promote switching or it could be an internal drive because he may be bored with the

current brand choice. The tendency to switch brands depends upon the brand loyalty of

the customer, if the loyalty towards existing brand is high in a customer than the tendency

to switch over is less however if it is on lower side than switching over and that too again

and again is comparatively higher. This of course depends upon the customer‟s attitude

towards brand, company, retailer and shopping process as whole.

FACTORS INFLUENCING EXTENT OF PROBLEM SOLVING INVOLVED IN

DIFFERENT BUYING SITUATIONS

The extent of the problem- solving process that the customers undergo in different types

of purchase situations depends on factors such as:

A) Degree of involvement- involvement can be defined as the level of perceived

personal importance and interest evoked by a stimulus within a specific situation. The

degree of involvement ranges from high to low and is determined by the extent upto

which consumers perceive the product to be important for them. The degree of

involvement is therefore the key factor in shaping the type of decision process that the

consumers will follow. In simple terms more important is the product or service to the

customer more is the involvement of the customer in the purchase and decision process.

When intrinsic personal factors such as needs, values and self-concept are dealt with,

with appropriate marketing stimuli within a given situation, involvement becomes

activated. There are several factors that determine the degree of involvement that

consumers have in mind while making purchase decisions. Research indicates that the

following are the factors that play a crucial role in determining the degree of involvement

that the customer is having in the purchase decision:

~ PERSONAL FACTORS- if the outcome of a particular purchase is likely to impact a

person directly than the degree of involvement tends to be on the higher side. Factors

such as health, physical condition, self-image, beauty etc. are the personal factors and any

decision that involves products and services pertaining to them is likely to be the

condition wherein consumers would be highly involved in the decision process. For

example: a women going in to buy cosmetic product would be twice more likely to be

involved in the process as she would have been in case of buying household grocery

because the former is directly going to affect her self-image and looks.

Fig 2.6 , personal factors such as self image induces the customer to be more involved in

the purchase decision making process(source: bellasugar.com)

~ SITUATIONAL FACTORS- situational or instrumental factors include factors such as

whether the product is being purchased for personal use or as a gift, and whether it is to

be consumed by self or is to be shared with others. Situational factors are dynamic in

nature. At a particular time its influence may be strong but of temporary nature and May

fade off once the product has been purchased.

For example: purchase of FAD fashion items are initially purchased due to the trend that

is prevailing at a time but eventually it subsides as the fad dies out or is replaced by a new

one. Accordingly the involvement will become higher for this new FAD but that too will

be temporary. Similarly when one is buying perfume for self, the factors such as brand,

price, packing etc. may be given secondary importance and fragrance be given primary

whereas if it is to be bought for gift purpose than these secondary factors may take up the

prime importance.

~ PRODUCT FACTORS- whenever consumers buy products or brands they always

evaluate them on the parameter of perceived risk. In case the perceived risk in buying a

particular product or brand is high than the consumers are more likely to be involved in

the purchase/decision making process. In case the perceived risk is too high than

customers tend to avoid the decision. Perceived risks can be categorized into various

categories such as:

-Physical risk i.e. harm caused to ones body. Before buying any chemical based products

such as cosmetics, customers are often reluctant to try out new brands as they may cause

some side effects to their skin. Therefore they will be deeply involved in taking decisions

while buying a new product/brand.

-Psychological risk i.e. harm to one‟s self image. People often buy brands to enhance

their self image; however they are hesitant to try out new or lesser known brands as they

are not sure whether this brand will enhance or defame their self image. Involvement in

decision making as well as hesitation in trying is very high in such cases.

-Performance risk i.e. fears that the product will not be able to deliver the performance as

expected of it. In case of consumer durables well known brands are known to deliver the

promises that they make and hence there is no risk of lack of performance but when it

comes to lesser known brands people are often doubtful of the promises that they make.

Consumer involvement therefore tends to be higher if the customer is planning to buy a

lesser known brand for an electronic item.

-Financial risk- i.e. risk of loosing one‟s earnings. In luxury items or ones with no

particular need fulfillment, customers are concerned with the risk of wasting their money.

If the price is very high their hesitation increases as they may perceive this buy to be

shear wastage of money.

B) Perception about differences among alternatives

The consumers often experience extended problem solving situation when they perceive

the choice alternatives to be different from one another. In case the consumers perceive

that the choice alternatives available are more or less the same, they will spend less time

on problem solving. However consider a situation wherein a customer finds out at the

retail shop that his favorite brand of shampoo „Pantene‟ is out of stock. If the customer

perceives L‟Oreal to be similar, she will spend less time choosing the available

alternative than if the difference between the two brands is perceived to be too high than

she is likely to spend more time in deciding and choosing the available alternative.

C) Availability of time

There are two time- related affect the level of consumer involvement in the purchase

decision. i) How much time consumer is ready to spend on searching, evaluating and

deciding about the product or brand? ii) How quickly decision needs to be taken? Let‟s

consider an executive who has to buy clothing for his trip abroad and since he already is

time starved therefore he will not look for various brands and will hastily buy for his

requirements whereas on the other hand when he would be buying anything while he is

on a vacation than he would spend considerable time on searching through various

brands. Whenever the time pressures experienced by the consumers are low they tend to

follow extended problem solving decision making.

D) Consumer’s Mood state

Information processing and evaluation is greatly influenced by the state of mood in which

a consumer is, at a particular time. Although the exact impact of a particular mood swing

on the shopping behavior of an individual is not known. However an attempt has been

made by researchers to find out the impact of mood fluctuations on the process of buying.

For example: a customer may spend considerable time and enjoy his shopping spree at

the time of festivals and special occasions. Whereas another customer in the same

situation might spend less time in searching and evaluating alternatives as he wants to

save time for other chores that need to be completed and hence may take hasty purchase

decisions.

CHAPTER END QUESTIONS

Q1- What do you mean by Shoppers behaviour? What are the factors that influence this

behaviour?

Q2- Shopping has now become an infotainment activity. Comment on this statement by

highlighting the growing importance of retail and associated sectors in changing the

perception of Indians towards shopping.

Q3- What do you understand by CDP model? What are the steps involved? Explain with

the help of a suitable example.

Q4- Explain various types of buying situations. What factors influencing the purchase

behaviour in each situation?

Q5- What role does a customer play in each buying situation? Does it varies from

situation to situation? Give reasons for your answer.